Narendra modi’s independence day speech with viewpoint on e commerce
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Prime Minister Narendra Modi's Independence Day speech emphasized good governance and outlined the implications of GST and FDI on the e-commerce industry, highlighting a dedicated chapter on e-commerce in the GST law. He praised India's progression in ease of doing business and clarified the distinction between marketplace and inventory-based models for foreign direct investment. Additionally, Modi underscored the importance of India Post in e-commerce logistics and was optimistic about the growth in the logistics sector.
Narendra modi’s independence day speech with viewpoint on e commerce
- 1. wwww.etailingindiaexpo.com Narendra Modi’s Independence Day speech with viewpoint on E-commerce eTailing India Thought Corner On the occasion of our 70th Independence Day, honorable Prime Minister Mr. Narendra Modi gave us a speech with a focus on ‘good governance’. Let’s see the highlight of the speech with respect to its implications on e-commerce industry. GST (Goods and Services Tax) On GST Bill, Modi said, “In global context, Indian economy is dynamic and moving forward on predictable lines. Approval of GST law by parliament has further strengthened our economy and all political parties are worthy of praise for making it possible.” There is a dedicated chapter on e-commerce transactions in the Model GST Law. The proposed Model GST Law may result in higher compliance challenges and will require further clarity and certainty.
- 2. wwww.etailingindiaexpo.com Some of the key issues include separation of an 'electronic commerce operator' and an ‘aggregator’; collection of GST at source by e-commerce operators from small suppliers, even when their turnover does not exceed the threshold exemption under GST law. You can read more on the Chapter on e-commerce transactions in GST law here:https://t.co/SDY1pjUjfO & https://lnkd.in/frfP2qX FDI (Foreign Direct Investment) On FDI, he quoted, “Successive decisions of India in the field of legal reforms, systematic reforms and change in approach- are being watched by the world. In ease of doing business, we have improved our ranking very fast. India has become the most favored nation for Foreign Direct Investment.” The new FDI norms allow 100% FDI under the automatic route in “marketplace model of e- commerce.” It has also been clarified that FDI is not permitted in "inventory based model of e-commerce". Also, FDI in Single Brand Retail allows foreign entities with physical presence in India to sell products through e-commerce as well. Definitions: Marketplace model: It has been defined as a model where the e-commerce entity provides an information technology platform on a digital and electronic network to act as a facilitator between buyers and sellers. Inventory based model: It has been defined as a model where the e-commerce entity owns the inventory of goods and services which are sold to the consumers directly. You can read more on FDI here: https://lnkd.in/f_iK76Q India Post Modi stressed on the importance of traditional postal service ‘India Post’.
- 3. wwww.etailingindiaexpo.com He said, “If any government representative gets the affection of a common man in India, it is the postman.” He added, “We have revived and rejuvenated our post offices.” The experience and familiarity that Speed Post brings in its rural postal service has made e- commerce companies increasingly prefer it for deliveries. Ashish Chitravanshi, Vice President of operations at Snapdeal says, “India Post has an unmatched network that is critical for the growth of e-commerce in India.” Speed post is expecting business to increase by nearly Rs.2.5 crore a year once Flipkart and Naaptol start providing products for delivery. You can read more on how e-tailers are using Speed Post to deliver in remote areas here: https://lnkd.in/fJCmsfp Logistics On the development of logistics supply, Modi spoke, “The World Economic Forum has analyzed logistical support and infrastructure in context of India and said that India is progressing rapidly and moved up 19 steps in the rating index.” According to global market researcher Novonous, India’s logistics industry is worth $300 billion. The logistics market will itself increment at a CAGR of 12.17% by 2020. Better consumer-experience is the essential factor that all the e-commerce players are vying for. Amazon Prime’s arrival in India and Flipkart’s expected launch of F-Assured has enforced Snapdeal’s resolution to come up with better logistics model to achieve metrics of customer lifetime value (CLV). You can read more on Logistics in e-commerce here: https://lnkd.in/f-zqqqr & https://lnkd.in/fbwKfaV Watch the entire PMspeechhere: https://youtu.be/4QXcP_56kgs